Macroeconomic effects of simultaneous implementation of reforms after the crisis
"This paper evaluates the macroeconomic effects of simultaneously implementing fiscal consolidation and competition-friendly reforms in a country of the euro area by simulating a large-scale dynamic general equilibrium model. We find, first, that the joint implementation of reforms has addition...
| Main Authors: | , , |
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| Institution: | ETUI-European Trade Union Institute |
| Format: | TEXT |
| Language: | English |
| Published: |
Roma
2014
Banca d'Italia |
| Subjects: | |
| Online Access: | https://www.labourline.org/KENTIKA-19115650124919338329-Macroeconomic-effects-of-simul.htm |
| _version_ | 1771659900201467905 |
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| author | Gerali, Andrea Notarpietro, Alessandro Pisani, Massimiliano |
| author_facet | Gerali, Andrea Notarpietro, Alessandro Pisani, Massimiliano |
| collection | Library items |
| description | "This paper evaluates the macroeconomic effects of simultaneously implementing fiscal consolidation and competition-friendly reforms in a country of the euro area by simulating a large-scale dynamic general equilibrium model. We find, first, that the joint implementation of reforms has additional expansionary effects on long-run economic activity. Increasing competition in the service sector favors a higher income tax base. Given the targeted public debt-to-GDP ratio, labor and capital income tax rates can be reduced more than with fiscal consolidation alone. Second, fiscal consolidation has non-negligible medium-run costs; however, they are reduced by joint implementation with the services reform. The results are robust to alternative assumptions that capture the impact of financial crisis on the financing conditions of households." |
| format | TEXT |
| geographic | EU countries |
| id | 19115650124919338329_dbe33d22eed84fb68297f8eab01eba6f |
| institution | ETUI-European Trade Union Institute |
| is_hierarchy_id | 19115650124919338329_dbe33d22eed84fb68297f8eab01eba6f |
| is_hierarchy_title | Macroeconomic effects of simultaneous implementation of reforms after the crisis |
| language | English |
| physical | 57 p. Digital |
| publishDate | 2014 |
| publisher | Roma Banca d'Italia |
| spellingShingle | Gerali, Andrea Notarpietro, Alessandro Pisani, Massimiliano economic recession fiscal policy public debt tax reform Macroeconomic effects of simultaneous implementation of reforms after the crisis |
| thumbnail | https://www.labourline.org/Image_prev.jpg?Archive=108683592686 |
| title | Macroeconomic effects of simultaneous implementation of reforms after the crisis |
| topic | economic recession fiscal policy public debt tax reform |
| url | https://www.labourline.org/KENTIKA-19115650124919338329-Macroeconomic-effects-of-simul.htm |